PROBLEM #1 A. Law and D. Renn operate separate auto repair shops. On January 1, 2020, they decide to combine their separate businesses which were operated as proprietorships to form L & R Auto Repair, a partnership. Information from their separate balance sheets is presented below: Law Auto Repair $ 8,000 9,000 1,000 5,000 Cash Accounts receivable Allowance for doubtful accounts Accounts payable Notes payable Salaries payable Equipment Accumulated depreciation- Equipment Renn Auto Repair $ 12,000 6,000 500 6,000 3,000 500 24,000 1,000 12,900 2, Subrayado (u) 4,000 It is agreed that the expected realizable value of Law's accounts receivable is $7,000 and the net realizable value of Renn's receivables is $5,000. The fair market value of Law's equipment is $15,000 and Renn's equipment is $20,000. It is further agreed that the new partnership will assume all liabilities of the proprietorships with the exception of the notes payable on Renn's balance sheet which he will pay himself. INSTRUCTIONS: Prepare the journal entries necessary to record the formation of the partnership for Law. 2 + Journal ) Ref Debit Credit Date Account name I Subrayado (U) Prepare the iournal entries necessary to record the formation of the partnership for Reon. Prepare the journal entries necessary to record the formation of the partnership for Renn. Journal Ref Debit Credit Date Account name 1 Subrayado (U)